Week 5 ir Flashcards
Mercantilism
economic nationalism, wealth depends on available capital
Economic liberalism
Politics & economy should be separate, leave economy to the free market, high export/import. Politics should focus on optimal function free market
Marxism & Economy
Economy determines political power structure, exploitation inherent to capitalism. International trade widens gap between core & periphery
Bretton Woods
1944, tied dollar to gold price = fixed exchange rate (fixed to a western standard though)
GATT
Now World Trade organisation. only applied to industrial products, eu protects it’s own agriculture
WTO Deadlock
Developed wants more countries to be recognised as developed (to relief them from privileges). Undeveloped wants free market on intellectual property.
Modernisation thesis
Maximise investments = open up economy & development will follow (Neo-liberal idea).
Anti-industrialization theory
The idea that all advanced economies have followed the same path is wrong, all rich countries have protected their own economy at some point (kick-the-ladder, concept).
Dependency theory
keep underdeveloped countries economically tied to developed countries = dependency. Wallerstein leaves room for for example china to change categories, core remains hegemonic power (US)
Trickle down effect
If the rich get richer it will “trickle down” to the poorer classes = onzin
HDI
Human development needs to not be focussed on economy instead education, life expectancy etc.
Sustainable Development goals
Leuk idee, only focusses on the symptoms not the problem (capitalism? Climate change? )
Washinton consensus
Liberalisation of economy
Comparative advantage
Specialising in one good so the total is more effective
Non-tariff barrier
Blocking of trade which isn’t putting taxes on something
Autarky
the separation of a country from the world economy to protect it’s own
Protectionism
A country restricts imports In an effort to protect it’s own economy
Infant-industry protection
imports of a particular good are restricted to allow domestic productive capacity to develop
Currents account
The country’s balance of trade in goods and services plus it’s receipts
Austerity
A policy by which governments raise interest rates or reduce government spending in an effort to reduce price inflation
International Monetary Fund
Created in 1946 to facilitate and reinforce the exchange rate systems created in the aftermath of ww2
Convertible currency
A currency that can be exchanged at market price for another currency
Keynesian liberalism
A version of liberal economic thought stating that governments must play and important role in managing their economies
Weaponised interdependence
The use by one country of it’s control over global or regional economic networks to coerce politically as state
Hegemonic stability theory
A theory that predicts the dominant power to use that power to influence world economy
Resource Curse
the possession of natural resources by developing countries, is more likely to hinder rather than to advance the development prospects of those countries
Import- substituting- industrialisation
A national development strategy that seeks to avoid international economic linkages, focusses on domestic production
National Champion
State pursuing ISI , government appoints national firms to make substituted national goods
International Commodity cartels
Grouping of developing countries that try to control the supply of raw material, to drive up prizes
International commodity agreement
Used to establish and acceptable price for raw goods
Export- led growth
A strategy that argues developing countries should rely on price competitive exports
Asian tigers
Asian countries who achieved rapid growth rates using a strategy of export-led growth
Beijing Consensus
The idea that for some poor countries, development can be best attained by government controls.
Official development assistance (ODA)
Grants or loans provided by a donor government to a developing country
Poverty trap
Countries so poor it can only pay day to day short term things instead of long term investments
